Investment Rating - The report assigns a stock rating of NR (Not Rated) for CDOT (00334.HK) [27]. Core Insights - The company experienced a significant year-on-year revenue increase of 57.3% to RMB 931.7 million in 2024 Q1, driven by strong sales of tablet display modules and other display modules, which offset a decline in smartphone module sales [2]. - The gross margin for CDOT in FY 2023 dropped to 6.5%, primarily due to a change in product mix, which may continue to affect profitability [41]. - The company has seen a recovery in sales volume, particularly in the second half of 2023, with non-laminated and laminated module sales volumes reaching 4.1 million and 38.7 million respectively [7]. Summary by Relevant Sections Revenue and Profitability - CDOT reported RMB 2.6 billion in revenue for FY 2023, reflecting a year-on-year decline of 8.4% and a significant drop of 55.1% in the first half of 2023 [7]. - The company achieved a net profit of RMB 13.1 million and an operating profit of RMB 19.0 million in FY 2023, reversing from a loss in the first half of 2023 [20]. Sales Performance - The sales volume of tablet display modules and other display modules in 2024 Q1 reached 0.7 million and 1.1 million, representing increases of 22.7 times and 87.8 times compared to 2023 Q1 [11]. - The ASP (Average Selling Price) of non-laminated and laminated modules increased to RMB 28.5 and RMB 70.4 in 2023 Q4, marking a rebound from previous lows [15]. Market Dynamics - The order book from a major smartphone manufacturer remained stable, contributing significantly to revenue stability in 2024 Q1 [36]. - The company’s strategy includes leveraging support from CSOT to customize panel sizes, enhancing its ability to meet customer demands and expand into the tablet market [40]. Future Outlook - The report indicates that while there has been operational improvement, low gross margins remain a concern, limiting the company's ability to withstand market fluctuations [42]. - The company is expected to see further contributions from the tablet and smart home device segments, potentially driving ASP increases in 2024 [17][19].

Financial Performance - Revenue for the year ended December 31, 2023, was RMB 2,577 million, a decrease of 38.8% compared to RMB 4,208 million in 2022[11] - Gross profit for 2023 was RMB 174 million, with a gross margin of 6.8%, down from RMB 344 million and 8.2% in 2022[11] - Net profit attributable to owners of the parent for 2023 was RMB 13 million, a significant decline from RMB 169 million in 2022[11] - Total sales volume for the year ended December 31, 2023, reached 47.6 million units, a year-on-year decrease of 12.1%[25] - Overall average selling price (excluding processing modules) decreased by 26.1% to RMB 58.7, with total revenue of RMB 2,576.8 million, down 38.8% year-on-year[25] - Revenue from the mainland China market was RMB 759.9 million, a decline of 61.5% year-on-year, while revenue from Hong Kong was RMB 1,816.0 million, down 18.7%[31] Assets and Liabilities - The total assets as of December 31, 2023, were RMB 2,532 million, slightly down from RMB 2,580 million in 2022[12] - The company maintained a low debt ratio of 0.1% with total liabilities of RMB 1,522 million[17] - The total equity attributable to the parent company as of December 31, 2023, was RMB 1,009.4 million, with a capital debt ratio of 0.1%[42] - The group had no pledged assets as of December 31, 2023, maintaining a clean balance sheet[43] Market Trends - Global smartphone shipments in 2023 totaled 1,165 million units, a decline of 3.5% year-on-year, marking the lowest level in nearly a decade[24] - The global shipment of A-Si LCD panels reached approximately 1,120 million units in 2023, reflecting a year-on-year increase of about 35.2%[24] - The global economic growth forecast for 2024 is expected to slow down, with China's economic growth projected at 4.6%[37] - IDC forecasts that smartphone shipments in China will reach 287 million units in 2024, a year-on-year growth of 3.6%[37] Product Development and Strategy - The company is optimistic about the growth of the display module business, aiming to expand its market share in smart home and mid-size markets[21] - The new smart factory has significantly improved production efficiency and reduced costs, enhancing product quality and economies of scale[20] - The company plans to strengthen its foundational equipment and diversify its product range to support long-term growth[21] - The group plans to invest more in the mid-sized commercial display market, anticipating partnerships with several well-known brand customers in 2024 and adding two new mid-sized production lines within the year[38] - The company recorded a significant increase in sales of mid-size products, reaching 2.9 million units, a year-on-year increase of 43.9%[35] - The revenue from mid-size products amounted to RMB 185.9 million, reflecting a year-on-year increase of 61.5%[35] Corporate Governance - The company aims to become a leading LCD module enterprise while enhancing corporate governance and business ethics[81] - The independent non-executive director, Ms. Xu Huimin, has over 20 years of accounting experience and has served as the chairman of the audit committee since June 2015[68] - The company has a strong management team with significant experience in human resources and marketing, including Mr. Hu Yudong, who has over 16 years of experience in human resources management[73] - The company has been actively expanding its board with experienced professionals in various fields, including law and telecommunications[72][76] - The company has established effective mechanisms to ensure independent viewpoints and opinions are obtained for board decisions[101] - The board consists of 7 members, all possessing the necessary professional background and expertise to guide and supervise the group's strategic focus[93] Risk Management and Compliance - The audit committee is responsible for overseeing the company's financial reporting and the relationship with external auditors[127] - The company has implemented internal control policies to ensure the reliability of financial reporting and compliance with relevant laws and regulations[159] - The audit committee reviews the effectiveness of the internal control and risk management systems, covering financial, operational, and compliance monitoring[160] - The company has adopted a whistleblowing policy and anti-corruption policy to promote compliance with anti-corruption laws and provide channels for reporting misconduct[166] - Related party transactions are monitored to ensure compliance with listing rules and conducted on fair and reasonable terms[167] Employee Management and Development - The total employee cost for the review period was RMB 208 million, with a workforce of 3,219 employees[52] - The company maintains a proactive approach to human resources management, focusing on employee assessment, talent acquisition, training, and morale[183] - The company organized 28 sessions for ECP certification and skill level assessment, with 714 individuals meeting the required standards for promotion or certification[187] - The company achieved a 100% training participation rate among employees during the review period, with an average training duration of 88 hours per person for the "Eagle Training Camp" program[190] - The company has established a unified standard for talent assessment and promotion, providing clear career development paths for employees[186] Environmental Responsibility - In 2023, the company invested approximately RMB 5.58 million in new environmental protection facilities and RMB 1.08 million in environmental management, ensuring compliance with national standards for wastewater, waste gas, and waste emissions[196] - The company saved 6,938,000 kWh of electricity and 177,000 tons of water through energy efficiency projects and improved production processes in 2023[196] - The company launched various community service initiatives, focusing on environmental protection and youth care, to fulfill its corporate social responsibility[197] Customer Relations and Supply Chain - The group has established strong relationships with major clients, including a subsidiary of TCL, ensuring stable order volumes[57] - The group has implemented a multi-source procurement policy and strategic inventory management to ensure sufficient supply of production materials[58] - The group benefits from stable material supply since the launch of TCL Huaxing's display panel production line "t9" in September 2022[58] - The group is focused on horizontal business expansion and developing diversified product types to attract new customers[57]

Financial Performance - Revenue for the year ended December 31, 2023, was RMB 2,576,806 thousand, a decrease of 38.7% compared to RMB 4,208,350 thousand in 2022[50]. - Gross profit for 2023 was RMB 174,051 thousand, down 49.3% from RMB 343,744 thousand in the previous year[50]. - Profit before tax decreased significantly to RMB 18,347 thousand, a decline of 89.0% from RMB 167,706 thousand in 2022[50]. - Net profit for the year was RMB 13,086 thousand, representing a drop of 92.3% compared to RMB 169,025 thousand in the prior year[50]. - Basic and diluted earnings per share for 2023 were RMB 0.62, down from RMB 8.06 in 2022[50]. - The total comprehensive income reported was RMB 9,283 million for the year, compared to RMB 168,668 million in the previous year[46]. - The total revenue from sales to related parties was approximately RMB 992,260,000 for the year ending December 31, 2023, down from RMB 1,762,880,000 in 2022[94]. - The revenue from industrial product sales was RMB 4,172,765,000, while processing and manufacturing services contributed RMB 35,585,000, totaling RMB 4,208,350,000 in customer contract revenue[96]. - The net profit attributable to the owners of the parent company was RMB 13.1 million in 2023, representing a significant decrease of 92.3% year-on-year from RMB 169.0 million in 2022[128]. - The company reported a total tax expense of RMB 5,261,000 for the year, compared to a tax credit of RMB 1,319,000 in 2022[104]. Cash and Equity - As of December 31, 2023, the group's cash and cash equivalents and time deposits amounted to RMB 422 million, with 11.2% in USD, 83.5% in RMB, and 5.3% in HKD[5]. - The total equity attributable to the parent company as of December 31, 2023, was RMB 1,009.4 million, with a capital debt ratio of 0.1%[6]. - Total equity as of December 31, 2023, was RMB 1,009,448 thousand, slightly down from RMB 1,000,165 thousand in 2022[54]. - Non-current liabilities totaled RMB 12,632 thousand, a decrease from RMB 75,635 thousand in the previous year[53]. - The group’s interest-bearing bank loans amounted to RMB 3.2 million as of December 31, 2023[39]. Customer and Market Dynamics - The largest customer and the top five customers accounted for approximately 53% and 89% of the group's revenue, respectively[8]. - The group is committed to diversifying its product range to reduce reliance on single customers and attract new clients[10]. - Revenue from mainland China was RMB 759.9 million, a decline of 61.5% from RMB 1,973.9 million[172]. - Revenue from Hong Kong was RMB 1,816.0 million, down 18.7% from RMB 2,232.8 million[172]. Operational Developments - The group plans to increase investment in the smart home and mid-size commercial display markets, with two new mid-size production lines expected to be added within the year[2]. - The group maintains a cautious optimism regarding the development prospects of the display module business, aiming to enhance competitiveness through improved supply chain layout and cost control[3]. - The company has implemented multiple smart production lines in its new display module factory in Huizhou, enhancing production efficiency and product quality[172]. - The company aims to expand its product range and technology platforms, focusing on medium-sized display modules and smart home devices to enhance competitiveness[185]. Cost Management - The total employee cost for the review period was RMB 208.0 million, with a workforce of 3,219 employees[28]. - The company has implemented strict production cost controls to mitigate the impact of external factors on its operations[142]. - Selling and distribution expenses were RMB 19,807 thousand, an increase from RMB 39,824 thousand in the previous year[50]. - The company reported a research and development expense of RMB 118.2 million in 2023, a decrease of 10.5% from RMB 132.0 million in 2022[122]. Economic Outlook - Global economic growth is expected to slow significantly in Q1 2024, with China's growth forecast at 4.6%[36]. - The global consumer electronics industry revenue is projected to exceed USD 1 trillion in 2024, indicating a growth trend[36]. - Smartphone shipments in China are expected to reach 287 million units in 2024, a year-on-year increase of 3.6%[36]. - The global smartphone shipment volume in 2023 was 1,165 million units, a decline of 3.5% year-on-year, marking the lowest level in nearly a decade[140]. - The global smartphone panel shipment volume is expected to grow by approximately 18% in 2023, indicating a recovery in panel demand despite declining smartphone shipments[152]. Compliance and Governance - The group has not engaged in any major litigation as of December 31, 2023[22]. - The group has established stable relationships with suppliers, with the largest supplier accounting for approximately 13% of procurement[11]. - The audit committee has reviewed the group’s annual performance and accounting principles for the year ending December 31, 2023[32]. - The company has not identified any significant impact from the recent accounting standard revisions on its financial statements[90]. - The company is currently evaluating the impact of the recent revisions to liability classification and expects no significant effects on its financial statements[111].

Revenue and Sales Performance - For the six months ended June 30, 2023, the total revenue was RMB 1,226,859,000, a decrease of 55.1% compared to RMB 2,735,253,000 for the same period in 2022[17] - Sales of industrial products amounted to RMB 1,209,564,000, down 55.4% from RMB 2,710,676,000 in the previous year[17] - Revenue from the mainland China market was RMB 196,576,000, a significant decline of 87.3% from RMB 1,545,853,000 in 2022[17] - Revenue from other countries/regions was RMB 1,030,283,000, a decrease of 13.4% compared to RMB 1,189,400,000 in the previous year[17] - Revenue from sales to related companies for the six months ended June 30, 2023, was approximately RMB 485,285,000, compared to RMB 1,016,830,000 for the same period in 2022[87] - In the first half of 2023, the total sales volume of the group's sales modules reached 21.2 million units, contributing RMB 1,209.6 million to the revenue, a decrease of 32.2% year-on-year[173] - The total sales for the six months ended June 30, 2023, reached 22.0 million units, a year-on-year decrease of 32.2%[194] Profitability and Loss - The company reported a loss per share of RMB 0.35 for the period, compared to a profit of RMB 6.44 per share in the previous year[31] - The net loss attributable to the parent company for the six months ended June 30, 2023, was RMB 7,418,000, compared to a profit of RMB 133,973,000 in the same period of 2022[51] - The total comprehensive loss for the period was RMB 16,771,000, which includes a loss of RMB 7,418,000 and an exchange difference of RMB 9,353,000[76] - The company reported a loss before tax of RMB (11,076) thousand for the six months ended June 30, 2023, compared to a profit of RMB 113,141 thousand in the same period of 2022[60] - The company reported a net loss attributable to shareholders of RMB 7.4 million, primarily due to reduced orders from major customers[195] Expenses and Costs - Gross profit for the same period was RMB 86,774,000, down 58.5% from RMB 208,896,000 in the previous year[51] - The cost of sales for the six months ended June 30, 2023, was RMB 1,140,085 thousand, a decrease of 56.5% compared to RMB 2,625,357 thousand in the same period of 2022[74] - Research and development expenses for the period amounted to RMB 52,136 thousand, down 32.7% from RMB 77,413 thousand in the same period of 2022[74] - The depreciation of property, plant, and equipment increased to RMB 51,559 thousand, up 93.0% from RMB 26,714 thousand in the same period of 2022[74] Assets and Liabilities - Total assets as of June 30, 2023, amounted to RMB 1,785,503,000, a decrease from RMB 1,904,750,000 at the end of 2022[51] - Current liabilities totaled RMB 1,590,324,000, an increase of 5.7% from RMB 1,504,381,000 at the end of 2022[51] - The company's cash and cash equivalents decreased significantly to RMB 690,800,000 from RMB 278,972,000, indicating a decline of 75.5%[51] - The total equity attributable to the parent company was RMB 983,394,000 as of June 30, 2023, down from RMB 1,000,165,000 at the end of 2022[36] - The total accounts payable decreased slightly to RMB 1,065,438,000 from RMB 1,072,636,000 year-on-year[121] Cash Flow - The net cash flow from operating activities for the six months ended June 30, 2023, was RMB (147,362) thousand, a significant decrease from RMB 2,542 thousand in the same period of 2022[60] - Cash and cash equivalents, including bank balances and fixed deposits, amounted to RMB 690,800,000, up from RMB 278,972,000 at the end of 2022[119] Market and Industry Trends - The smartphone market is expected to decline by 5.2% year-on-year in 2023, with total shipments projected at 1,144 million units[179] - The overall average selling price (excluding processed modules) decreased by 34.1% to RMB 57.2[173] - The smartphone display panel shipment volume decreased by 9.0% quarter-on-quarter in Q1 2023, with a recovery in Q2 driven by low inventory levels[194] Strategic Focus and Development - The company plans to continue focusing on research and development, with R&D costs included in administrative expenses[21] - The company is actively engaged in research and development of new technologies to enhance its product offerings and market competitiveness[81] - The company is focusing on developing mid-size display modules and smart home devices to enhance competitiveness in the market[200] - The company is leveraging its subsidiary, Huizhou Keda Tezhixian Technology Co., Ltd., as a supplier for IoT-related products to capture potential market opportunities[200] - The company aims to mitigate external economic impacts through strict production cost control and increased production efficiency[195]

Financial Performance - Total revenue for the year ended December 31, 2022, was RMB 4,208 million, a decrease of 28% from RMB 5,840 million in the previous year[39] - Gross profit for the same period was RMB 344 million, with a gross margin of 8.2%, slightly down from 8.5% in the previous year[39] - Profit attributable to the owners of the parent company was RMB 169 million, compared to RMB 193 million in the previous year[39] - Revenue from continuing operations for the year ended December 31, 2022, was RMB 4,208,350 thousand, a decrease of 28% from RMB 5,840,094 thousand in 2021[71] - Gross profit for the year was RMB 343,744 thousand, down from RMB 494,632 thousand in the previous year, reflecting a decline of approximately 30.5%[71] - Profit before tax from continuing operations was RMB 167,706 thousand, compared to RMB 219,888 thousand in 2021, representing a decrease of about 23.7%[71] - The net profit attributable to owners of the parent for the year was RMB 169,025 thousand, slightly up from RMB 166,488 thousand in 2021, indicating a marginal increase of 0.3%[71] - Total comprehensive income for the year was RMB 168,668 thousand, down from RMB 199,522 thousand in the previous year, reflecting a decrease of approximately 15.4%[75] - The basic earnings per share for the year was RMB 8.06, compared to RMB 9.22 in 2021, showing a decline of about 12.6%[71] Assets and Liabilities - Total assets as of December 31, 2022, were RMB 2,580 million, down from RMB 2,887 million in the previous year[40] - Total liabilities decreased to RMB 1,580 million from RMB 2,056 million, resulting in a net asset increase to RMB 1,000 million from RMB 831 million[40] - Non-current assets increased to RMB 675,431,000 in 2022 from RMB 533,269,000 in 2021, representing a growth of 26.6%[78] - Current assets decreased to RMB 1,904,750,000 in 2022 from RMB 2,353,796,000 in 2021, a decline of 19.0%[78] - Total liabilities decreased to RMB 1,580,016,000 in 2022 from RMB 2,055,568,000 in 2021, a reduction of 23.1%[78] - Net assets increased to RMB 1,000,165,000 in 2022 from RMB 831,497,000 in 2021, reflecting a growth of 20.3%[80] - The company’s total equity increased by 20.3% to RMB 1,000,165,000 in 2022, up from RMB 831,497,000 in 2021[80] Cash Flow and Financial Management - Cash flow from operating activities for the year was RMB 129,491,000, down 78% from RMB 600,255,000 in the previous year[124] - The company’s cash flow from investing activities showed a net outflow of RMB 887,294,000, compared to a net inflow of RMB 46,791,000 in the previous year[124] - Cash and cash equivalents decreased significantly to RMB 278,972,000 in 2022 from RMB 1,053,445,000 in 2021, a drop of 73.5%[78] - The company reported a net loss from derivative financial instruments of RMB 28,619,000, with no such loss reported in the previous year[124] - The company’s financing costs decreased to RMB 1,646,000 from RMB 2,627,000 in the previous year[124] Market and Sales Performance - The group achieved sales of 52.5 million display modules, accounting for 96.9% of total sales, with a revenue of RMB 4,172.8 million[54] - The average selling price decreased by 12.7% year-on-year to RMB 79.4 per unit, excluding processing modules[54] - Global panel shipments declined by over 8% year-on-year in 2022, influenced by the ongoing downturn in the smartphone market[53] - The smartphone market faced significant pressure, with global smartphone shipments declining by 11.3% year-on-year to 1,210 million units in 2022[96] - The company anticipates a 1.9% year-on-year increase in mobile phone shipments in China for the first half of 2023, indicating a challenging market environment[114] Strategic Initiatives and Future Outlook - The company completed the acquisition of 100% equity in IoT product supplier Keda Smart Display, which is expected to enhance its software platform and create synergies with its module business[45] - The group plans to focus on expanding into the medical, smart home, and mid-size industrial control display markets to enhance competitiveness[50] - The collaboration with TCL Huaxing aims to penetrate the mid-size specialized display market, leveraging a panel module integration business model[48] - The group remains cautiously optimistic about the long-term prospects of the display module business despite current challenges[50] - The company aims to strengthen its customer base and optimize its product structure through deepened collaboration with TCL Huaxing, targeting the mid-size professional display market[108] Employee and Corporate Governance - The group had a total employee cost of RMB 279.2 million during the review period, with 2,061 employees as of December 31, 2022[190] - The company aims to provide competitive compensation and benefits, regularly updating its remuneration policies in line with local GDP growth and legal regulations[190] - The company has established a code of conduct for securities trading, which all directors confirmed compliance with for the year ended December 31, 2022[15] - The company has no directors with interests in competing businesses as of December 31, 2022[8] - The company has not engaged in any significant litigation as of December 31, 2022, indicating a stable legal standing[121] Related Party Transactions - Related transactions were conducted with TCL Technology and its affiliates during the year ended December 31, 2022[173] - The company received processing fees of RMB 35,585,000 from TCL Technology Group for the year ended December 31, 2022[1] - The company paid RMB 1,516,000 to Huizhou TCL for human resources services for the year ended December 31, 2022[2] - The company paid RMB 2,549,000 to Qianhai Qihang for logistics and import agency services for the year ended December 31, 2022[5] Compliance and Audit - The audit committee reviewed the financial statements for the year ended December 31, 2022, and confirmed compliance with applicable accounting standards and regulations[17] - The independent auditor, Ernst & Young, issued an unqualified opinion on the company's continuous connected transactions for the year ended December 31, 2022[7] - The company has not entered into any management contracts for the operation of its main business during the reporting period[9] Share Option and Incentive Plans - The share option plan aims to reward and incentivize eligible participants who contribute to the operational success of the group[150] - The maximum number of shares that can be granted to any participant under the share incentive plan is limited to 1% of the issued share capital at the time of adoption, which is 17,214,998 shares[170] - The company has granted a total of 103,289,988 shares under the share incentive plan, of which 102,946,488 shares have vested and 343,500 shares have been forfeited[171] - No stock options or rewards were granted under the stock option plan or share incentive plan during the year ended December 31, 2022[172]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈之內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公佈全部或任何 部份內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 China Display Optoelectronics Technology Holdings Limited 華 顯 光 電 技 術 控 股 有 限 公司 （於百慕達註冊成立之有限公司） 334 （股份代號： ） 業績公佈 截至二零二二年十二月三十一日止年度 財務摘要 業績 截至 截至 二零二二年 二零二一年 十二月 十二月 三十一日 三十一日 止年度 止年度 變動 人民幣千元 人民幣千元 持續經營業務 4,208,350 5,840,094 (27.9%) ...

Financial Performance - Revenue from continuing operations for the six months ended June 30, 2022, was RMB 2,735,253 thousand, a decrease of 4.1% compared to RMB 2,852,542 thousand in the same period of 2021[11] - Gross profit for the same period was RMB 208,896 thousand, down 6.6% from RMB 223,634 thousand year-on-year[11] - Profit attributable to owners of the parent for the period was RMB 133,973 thousand, representing an increase of 37.5% compared to RMB 97,552 thousand in the previous year[11] - Basic earnings per share for the period was RMB 6.44, compared to RMB 4.65 in the same period last year, reflecting a year-on-year increase of 38.3%[11] - For the six months ended June 30, 2022, the company reported a total comprehensive income of RMB 134,016 thousand, compared to RMB 103,967 thousand for the same period in 2021, representing an increase of approximately 29.0%[19] - The company reported a profit attributable to owners of the parent from continuing operations of RMB 133,973 thousand for the six months ended June 30, 2022, compared to RMB 70,825 thousand in the same period of 2021[68] Assets and Liabilities - Total assets as of June 30, 2022, amounted to RMB 1,529,060 thousand, a decrease from RMB 1,586,715 thousand as of December 31, 2021[15] - Current liabilities decreased to RMB 1,685,368 thousand from RMB 2,038,131 thousand at the end of the previous year, indicating improved liquidity[15] - Net assets attributable to owners of the parent increased to RMB 957,987 thousand from RMB 831,497 thousand, showing a growth of 15.2%[17] - As of June 30, 2022, total equity amounted to RMB 957,987 thousand, an increase from RMB 736,525 thousand as of June 30, 2021, representing a growth of approximately 30.0%[21] - Trade payables as of June 30, 2022, totaled RMB 1,286,510,000, a decrease from RMB 1,477,768,000 as of December 31, 2021[81] Cash Flow - The cash flow from operating activities for the six months ended June 30, 2022, was RMB 2,542 thousand, a significant decrease from RMB 392,588 thousand in the same period of 2021, indicating a decline of approximately 99.3%[25] - The net cash flow from operating activities for the six months ended June 30, 2022, was RMB 2,542,000, a significant decrease from RMB 392,588,000 in the same period of 2021[27] - The net cash flow used in investing activities was RMB (65,604,000), an improvement compared to RMB (77,788,000) in the previous year[27] - The net cash flow from financing activities was RMB 4,134,000, down from RMB 90,332,000 in the prior year[27] - The total cash and cash equivalents at the end of the period amounted to RMB 1,015,860,000, compared to RMB 821,488,000 at the end of the previous period[27] Revenue Breakdown - Revenue from mainland China was RMB 1,545,853,000, down 8.8% from RMB 1,694,817,000 in the previous year[42] - Revenue from other countries/regions increased to RMB 1,189,400,000, up 2.7% from RMB 1,157,725,000 in the prior year[42] - Revenue declined to RMB 2,735 million, a decrease of 4.1% year-on-year, primarily due to reduced demand and inventory adjustments by major brand customers[124] - Revenue from mainland China and Hong Kong accounted for 99.9% of total revenue, with RMB 1,546 million and RMB 1,187 million respectively[128] Expenses and Costs - The cost of sales for the period was RMB 2,625,357,000, slightly down from RMB 2,628,132,000 in the previous year[52] - Research and development expenses for the period were RMB 77,413,000, a decrease of 11% from RMB 87,003,000 in the previous year[52] - The company recorded a loss of RMB 7,529 thousand related to equity-settled share-based payment arrangements during the six months ended June 30, 2022[19] - The company incurred capital expenditures of RMB (79,680,000) for property, plant, and equipment, down from RMB (130,071,000) in the previous year[27] Shareholder Information - The total issued and fully paid ordinary shares remained at 2,114,307,929 shares as of June 30, 2022, with a corresponding value of RMB 172,134,000[91] - The company did not recommend any dividend payment for the six months ended June 30, 2022, consistent with the previous year[69] - The company declared no interim dividend for the six months ended June 30, 2022, consistent with the previous year[169] Strategic Initiatives - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[11] - The company maintained strategic partnerships with major clients, which helped mitigate the impact of industry-wide pressures[124] - The group acquired 100% equity of Gaosenda Intelligent Technology Co., Ltd. for RMB 51 million, enhancing its IoT product supply chain[134] Related Party Transactions - The company reported related party transactions with TCL Technology and its subsidiaries amounting to RMB 673,601,000 in total sales, with product sales contributing RMB 24,577,000[110] - The interest income from related parties was RMB 12,522,000, compared to RMB 6,198,000 in the previous year[110] - As of June 30, 2022, the company had receivables from related parties totaling RMB 343,480,000, a decrease from RMB 453,462,000 as of December 31, 2021[114] Corporate Governance - The audit committee has been established to review and supervise the financial reporting process and internal controls of the group[177] - The audit committee consists of three members, including the chairperson, Ms. Xu Huimin, and two independent non-executive directors, Mr. Li Yang and Mr. Xu Yan[177] - The company complied with the corporate governance code, with some deviations noted regarding the company secretary's employment status[172]

Financial Performance - The company achieved a total sales volume of 66.7 million units in 2021, representing a year-on-year increase of 34.0%[23] - Revenue for the year reached RMB 5,840 million, a growth of 63.5% compared to RMB 3,571 million in 2020[23] - The gross profit was RMB 495 million, with a gross margin of 8.5%, up from 7.8% in the previous year[14] - Net profit attributable to the owners of the parent company was RMB 193 million, significantly higher than RMB 25 million in 2020[14] - Revenue grew to RMB 5,840 million, a year-on-year increase of 63.5%[31] - The average selling price increased by 8.4% to RMB 91.0, excluding processing modules[32] - Gross profit reached RMB 495 million, with a gross margin of 8.5%, up 0.7 percentage points year-on-year[32] - Net profit attributable to the parent company surged to RMB 193 million, a year-on-year increase of 668.3%[32] - Total revenue for the year ended December 31, 2021, was RMB 5,840 million, representing a 63.5% increase compared to RMB 3,571 million in 2020[36] Asset and Liability Management - Cash and cash equivalents increased to RMB 1,053 million from RMB 417 million in the previous year[15] - Total assets decreased to RMB 2,887 million from RMB 3,115 million, while total liabilities also decreased to RMB 2,056 million from RMB 2,364 million[15] - The current ratio improved to 1.15 from 0.93, indicating better short-term financial health[16] - As of December 31, 2021, cash and cash equivalents totaled RMB 1,072 million, with a capital debt ratio of 2.7%[45] Sales and Market Expansion - Sales of A-Si LCD modules increased by 53.1% to 63.7 million units, accounting for 95.5% of total sales[31] - The domestic shipment of 5G smartphones reached 266 million units, a year-on-year growth of 63.5%, accounting for 75.9% of total smartphone shipments in China[28] - Sales volume of tablet and electronic education display modules increased by 78.3%, reaching 3.5 million units during the review period[41] - The company aims to explore markets in automotive displays, laptops, and IoT devices to capture growth opportunities in the mid-size display module market[44] - The company plans to enhance production capacity with the new smart factory in Huizhou expected to commence operations in Q2 2022[31] Strategic Focus and Partnerships - The company is focusing on optimizing its industry layout, product structure, and manufacturing and supply chain systems to enhance competitiveness[23] - The company aims to strengthen partnerships with leading brand customers and expand into mid-size display modules for automotive, commercial laptops, and IoT markets[31] - The company is committed to maintaining strategic partnerships with top global smartphone brands, with over 70% of total revenue coming from these clients[41] Corporate Governance - The company has complied with the corporate governance code, with no significant deviations reported for the year ending December 31, 2021[84] - The board of directors expressed confidence in achieving long-term growth targets, supported by a robust business strategy and market demand[66] - The board consists of seven directors, all possessing the necessary professional background and expertise to guide and supervise the group's strategic focus[92] - The company has a dedicated team for financial and investor relations to ensure timely communication of performance and developments[85] - The company has implemented a written guideline for employees regarding the trading of company securities to prevent insider trading[120] Risk Management and Internal Controls - The company maintains an effective internal control and risk management system, which is reviewed annually by external auditors[162] - The board is responsible for ensuring the establishment and maintenance of appropriate internal controls and risk management systems[162] - The audit committee reviews the external auditor's findings related to internal controls and the actions taken by management to address identified issues[166] Employee Management and Development - The group had a total employee cost of RMB 367 million during the review period, with 4,111 employees as of December 31, 2021[56] - The company has established a career development pathway for all positions, focusing on both technical and managerial skills to nurture and promote talent[188] - During the review period, the company recruited 29 fresh graduates and provided over 264,000 hours of training, with external training costs exceeding RMB 250,000[190] - The company organized outdoor team-building activities with nearly 100 employees participating, aimed at strengthening organizational cohesion and team spirit[191] Sustainability and Corporate Social Responsibility - The company is committed to sustainable development and corporate social responsibility, integrating these principles into daily operations[58] - The management emphasized the importance of sustainability initiatives, committing to reduce carbon emissions by H% by 2025[66] - The company achieved energy savings of 391.55 kWh and water savings of 61,000 tons through improved production efficiency and product yield[197] - The company engaged in various community service activities, accumulating a total of 78 hours of volunteer service during the review period[198] - The company has implemented a comprehensive management system for environmental protection, ensuring compliance with relevant laws and regulations without any violations during the review period[197]

Financial Performance - Revenue for the six months ended June 30, 2021, was RMB 2,852,542 thousand, a 108.5% increase from RMB 1,371,514 thousand in the same period of 2020[12]. - Gross profit for the same period was RMB 223,634 thousand, up 77.9% from RMB 125,578 thousand year-on-year[12]. - Profit attributable to owners of the parent for the period was RMB 97,552 thousand, compared to a loss of RMB 88,527 thousand in the prior year[12]. - Basic earnings per share for the period was RMB 4.65, compared to a loss per share of RMB (4.22) in the previous year[12]. - The company reported a total comprehensive income of RMB 103,967 thousand, recovering from a loss of RMB (137,815) thousand in the same period last year[15]. - The operating profit before tax from continuing operations was RMB 92,473 thousand, significantly higher than RMB 25,465 thousand in the previous year[12]. - Other income and gains increased to RMB 19,489 thousand from RMB 9,245 thousand year-on-year, reflecting a growth of 110.5%[12]. - The company reported a profit of RMB 97,552,000 for the six months ended June 30, 2021, compared to a loss in the previous period[22]. - The company reported a profit from continuing operations of RMB 92,473,000, compared to RMB 25,465,000 in the same period last year, reflecting a growth of 263.5%[28]. - The group achieved a gross profit of RMB 224 million, representing a year-on-year increase of 78.1%[141]. - The group reported a profit attributable to the owners of the parent company of RMB 98 million, compared to a loss of approximately RMB 89 million in the same period last year[141]. Revenue Breakdown - Revenue from mainland China was RMB 1,694,817,000, up 40.8% from RMB 1,203,775,000 in the previous year[47]. - Revenue from other countries/regions increased significantly to RMB 1,157,725,000, compared to RMB 167,739,000 in the prior year, marking a growth of 590.5%[47]. - The total customer contract revenue included RMB 2,830,145,000 from LCD modules, which increased from RMB 1,299,993,000 in the previous year[52]. - Approximately RMB 1,291,139,000 of revenue was generated from sales to related companies, a substantial increase from RMB 294,215,000 in the previous year[50]. - Revenue grew to RMB 2,853 million, representing a year-on-year increase of 108.0%[140]. - Revenue from sales of TFT LCD modules totaled RMB 2,853 million, reflecting a year-on-year growth of 108.0%[144]. - Revenue from mainland China and Hong Kong accounted for 99.4% of the group's total revenue, with RMB 1,695 million and RMB 1,142 million respectively[144]. Expenses and Costs - Selling and distribution expenses rose to RMB 32,020 thousand, up from RMB 15,638 thousand, indicating an increase of 104.5%[12]. - Administrative expenses increased to RMB 115,736 thousand from RMB 88,430 thousand, marking a rise of 30.8%[12]. - The cost of sales increased significantly to RMB 2,628,132,000 from RMB 1,243,145,000, reflecting a substantial rise in inventory costs[61]. - The total tax expense from continuing operations for the period was RMB 21,648,000, compared to RMB 8,896,000 in the previous year[70]. Assets and Liabilities - Non-current assets decreased to RMB 415,960,000 as of June 30, 2021, down from RMB 993,379,000 as of December 31, 2020, representing a decline of 58.2%[17]. - Current assets increased to RMB 2,380,144,000 as of June 30, 2021, compared to RMB 2,121,305,000 as of December 31, 2020, reflecting a growth of 12.2%[17]. - Total liabilities decreased to RMB 2,059,579,000 as of June 30, 2021, down from RMB 2,364,180,000 as of December 31, 2020, a reduction of 12.9%[17]. - Net current assets improved to RMB 380,903,000 as of June 30, 2021, compared to a net current liability of RMB 152,276,000 as of December 31, 2020[17]. - Total equity attributable to owners of the parent company was RMB 736,525,000 as of June 30, 2021, slightly down from RMB 750,504,000 as of December 31, 2020[20]. Cash Flow - Cash and cash equivalents increased significantly to RMB 821,488,000 as of June 30, 2021, up from RMB 416,730,000 as of December 31, 2020, marking a rise of 96.9%[17]. - The operating cash flow for the six months ended June 30, 2021, was RMB 392,588,000, a decrease of 65.6% compared to RMB 1,141,225,000 for the same period in 2020[31]. - Cash and cash equivalents at the end of the period amounted to RMB 821,488,000, up from RMB 304,337,000 in the previous year, representing an increase of 169.5%[31]. - The cash flow from investing activities was a net outflow of RMB 77,788,000, an improvement from a net outflow of RMB 166,949,000 in the previous year[31]. - The financing activities resulted in a net cash inflow of RMB 90,332,000, a significant recovery from a net outflow of RMB 770,968,000 in the previous year[31]. Inventory and Receivables - Trade receivables decreased to RMB 967,486,000 as of June 30, 2021, from RMB 1,012,621,000 as of December 31, 2020, a decline of 4.5%[17]. - The company’s inventory reduced to RMB 306,195,000 as of June 30, 2021, down from RMB 608,515,000 as of December 31, 2020, indicating a decrease of 49.7%[17]. - The company recorded a significant decrease in trade receivables, with a reduction of RMB 257,769,000 compared to an increase of RMB 1,005,592,000 in the same period last year[31]. - The company generated RMB 291,774,000 from a decrease in inventory, compared to RMB 94,624,000 in the previous year, indicating improved inventory management[31]. Strategic Initiatives - The company aims to continue expanding its market presence and investing in new technologies to drive future growth[12]. - The company plans to focus on expanding its market presence and investing in new technologies to drive future growth[19]. - The group plans to enhance its sales strategy for smart devices to capitalize on market opportunities and improve profitability[150]. - The group holds an optimistic long-term outlook for the display module business despite regional pandemic fluctuations affecting economic recovery[153]. Shareholder Information - The company did not recommend any dividend payment for the six months ended June 30, 2021, consistent with the previous year[75]. - The company has granted a total of 103,289,988 shares under the share incentive plan since its adoption, with 102,946,488 shares vested and 343,500 shares forfeited as of June 30, 2021[105]. - The company has a share option scheme effective from June 25, 2015, aimed at rewarding and retaining eligible participants[106]. - The company has capital commitments of RMB 185,712 thousand for property, plant, and equipment as of June 30, 2021, compared to RMB 4,442 thousand as of December 31, 2020[116]. - The company has not specified a minimum holding period for the stock options, but the board may determine a holding period before the options can be exercised[109]. Corporate Governance - The company has complied with the corporate governance code, except for a deviation regarding the company secretary not being an employee of the issuer[191]. - The audit committee has reviewed the unaudited interim condensed consolidated financial statements for the six months ended June 30, 2021, and found them to comply with applicable accounting standards[196]. - The company has established a code of conduct for directors' securities transactions, which meets or exceeds the standards set by the relevant guidelines[195].

Financial Performance - Revenue for the year ended December 31, 2020, was RMB 4,353 million, a decrease of 20.2% compared to RMB 5,456 million in 2019[12] - The company recorded a profit attributable to owners of the parent of RMB 25 million, down from RMB 52 million in the previous year[12] - The overall revenue decreased to RMB 4,353 million, a decline of 20.2% year-on-year, primarily due to lower average prices of non-processing products[36] - The gross profit for the year was RMB 220 million, with a gross margin of 5.0%, an increase of 0.1 percentage points year-on-year[32] - Revenue from Hong Kong and China accounted for 98.9% of total revenue, with Hong Kong revenue increasing by 104.5% year-on-year[36] Sales and Market Trends - The sales volume reached 112 million units, an increase of 1.4% year-on-year, supported by orders from leading brand clients[20] - The sales volume of processing products was 71 million units, up 51.5% year-on-year, contributing RMB 862 million to revenue, a 69.7% increase[31] - The sales volume of tablet and learning device display modules increased by 192% year-on-year, reaching 4.6 million units[40] - The sales volume of bonded LCD modules was 39 million units, a decrease of 19.1% year-on-year[33] - The cumulative shipment of 5G smartphones in China reached 163 million units, accounting for 52.9% of the total smartphone market[29] Strategic Focus and Future Plans - The company plans to strengthen its competitive advantage and focus on the semiconductor display business, anticipating a significant increase in user demand in 2021[21] - The company aims to expand into the smart home and wearable display module markets, capturing opportunities arising from remote work and education trends[20] - The company plans to actively deploy in the smart home and wearable display module markets to capture significant opportunities in these sectors[42] - The company is preparing for a projected 11.4% growth in global smartphone shipments in 2021 according to Gartner[21] - New product launches are anticipated to drive revenue growth, with specific emphasis on advancements in display technology[75] Operational Efficiency and Management - The processing business accounted for 63% of total sales, with revenue from this segment rising by 69.7% to RMB 862 million[20] - Inventory turnover days increased to 36 days from 27 days in the previous year[14] - The company aims to maximize industrial efficiency and maintain orders from first-tier customers while strengthening R&D related to 5G products and advanced display technologies[42] - The company has initiated the construction of a smart factory in Huizhou, China, with a planned total building area of over 100,000 square meters to enhance R&D capabilities and manufacturing technology[41] Governance and Compliance - The company has appointed independent non-executive directors with extensive experience in accounting and law, enhancing governance and oversight[70][72][73] - The company is committed to maintaining high standards of corporate governance and compliance with regulatory requirements[81] - The board of directors includes members with significant academic and professional backgrounds, ensuring informed decision-making[72][73] - The company has complied with the corporate governance code, with the exception of the chairman's absence at the annual general meeting due to prior commitments[83] - The board has established three committees: the Remuneration Committee, the Audit Committee, and the Nomination Committee, each with specific responsibilities[123] Human Resources and Employee Development - The company employed 7,197 staff members as of December 31, 2020, with total employee costs amounting to RMB 584 million[54] - The total number of employees as of December 31, 2020, was 7,107, with a gender ratio of 1.8:1 and an overall employee turnover rate of 7.6%[182] - In 2020, the company recruited 29 fresh university graduates and initiated an important training program for them, enhancing their professional development[184] - Over 400 personnel received skill level certification in 2020, reflecting the company's commitment to talent development[185] - The company provided internal professional training and sponsored 21 employees to participate in external professional courses, totaling over 2,480 hours of training for 346 employees[187] Social Responsibility and Community Engagement - The group adhered to social responsibility regulations without any related litigation incidents in 2020[189] - The group organized multiple volunteer service activities, including tree planting and blood donation, contributing to community welfare[194] - The group emphasized employee mental health by hiring professional counselors, with nearly 100 participants benefiting from the sessions[189] - In 2020, the group implemented energy-saving improvement projects for air conditioning and cleaning equipment, reducing greenhouse gas emissions[193] Risk Management and Internal Controls - The company has established a robust risk management framework to monitor management performance and ensure effective execution[89] - The audit committee is responsible for ensuring effective internal controls and overseeing the external auditor's work, consisting of three independent non-executive directors[152] - The internal audit team independently reviews the effectiveness of the company's risk management and internal control systems, reporting at least annually to the board[162] - The board is responsible for ensuring that the company maintains appropriate and effective internal control and risk management systems[160] - The audit committee has confirmed that the internal control and risk management systems are adequate and effective as of December 31, 2020[160]